I’m thinking of hiring a commercial sales and CS rep.

[ACE]

One of my customers asked if I would be looking for any help with janitorial accounts. She explained she was getting laid off from her sales / marketing job. I asked her to tell me about the work she had been doing. She works for some roofing industry association; it’s kind of like what the IICRC is to us. She goes to trade shows edits magazine articles and makes cold calls. She has a very sincere, energetic personality. I’m meeting with her next week to talk about the possibility of a sales job. I need to find out what her expectations are but I’m thinking of offering something like this:
Pay would be on a 1099 basis.
$4500.00 to supplement commissions up to $1500.00 per month
20%-30% sales commission depending on the size and profitability on the sale.
10% residual commission for repeat customers.
She would be in charge of a small marketing budget $200-$300 per month.
If she is good, she should easily be able to sell $100 K the first year working part time. At an average commission of 25% that’s $25,000. With a decent customer retention rate, the next year she could easily pull $35k. To be honest, this is all a little scary to me. This not the risk of losing money that worries me it’s just a huge jump from where I’m at now. I am a one man show and this year I will have only done 80-90 K and have no commercial sales strategy in place. I know there is a huge chance she won’t work out, but with the loan payments for all the equipment I’ve bought I have little no option other than growing my business.

Thoughts?

 

[daniel@procarpet]

You are a one man show and you are going to pay her 1150 dollars per week plus commision. How do you plan to do that? You are going to go broke my friend.

 

[joe harper]

If you are going to hire ANY outside SALES...."COMMISSION ONLY"

Any sales-person worth their SALT .....Does not need a BASE salary..!!!!

THEY CAN EAT...WHAT THEY KILL.....

If they don't sale....they DO NOT EAT.....!!!!!!

20% of the GROSS is more than FAIR PAY.... :!:

 

[floorguy]

I have thought about it to...

have a buddy who loves sales, and is looking for part time work...

i figure if he can sell it (kill it) then he can get paid...


I love the work but hate the cold calling :x :x


soooo 20% sounds good harper?? what about repeat work, they get 20% if say you land a mthly acct??

 

[ACE]

I have done the math where to you get 1150 a week? Ideally she would be paid a salary for a short time, a month at most and then straight commission. In all fairness I will have to extend that period because we will have to develop a marketing program and she will be starting in the winter.

 

[daniel@procarpet]

One of my customers asked if I would be looking for any help with janitorial accounts. She explained she was getting laid off from her sales / marketing job. I asked her to tell me about the work she had been doing. She works for some roofing industry association; it’s kind of like what the IICRC is to us. She goes to trade shows edits magazine articles and makes cold calls. She has a very sincere, energetic personality. I’m meeting with her next week to talk about the possibility of a sales job. I need to find out what her expectations are but I’m thinking of offering something like this:
Pay would be on a 1099 basis.
$4500.00 to supplement commissions up to $1500.00 per month
20%-30% sales commission depending on the size and profitability on the sale.
10% residual commission for repeat customers.
She would be in charge of a small marketing budget $200-$300 per month.
If she is good, she should easily be able to sell $100 K the first year working part time. At an average commission of 25% that’s $25,000. With a decent customer retention rate, the next year she could easily pull $35k. To be honest, this is all a little scary to me. This not the risk of losing money that worries me it’s just a huge jump from where I’m at now. I am a one man show and this year I will have only done 80-90 K and have no commercial sales strategy in place. I know there is a huge chance she won’t work out, but with the loan payments for all the equipment I’ve bought I have little no option other than growing my business.

Thoughts?

It says in your quote 4500.00 plus commission up to 1500 per month. I assumed you meant 4500 guaranteed monthly plus commison. Anybody would work for that. You must have meant 450 weekly plus commison. What did you mean?

 

[ACE]

If you are going to hire ANY outside SALES...."COMMISSION ONLY"

Any sales-person worth their SALT .....Does not need a BASE salary..!!!!

THEY CAN EAT...WHAT THEY KILL.....

If they don't sale....they DO NOT EAT.....!!!!!!

20% of the GROSS is more than FAIR PAY.... :!:

I think a sales rep should get a bigger% based on the profitability of the work the land. I don’t mind paying a base if someone is making progress. I think paying any kind of initial base salary sends a message to the employee that you believe in them and their value to your company.

 

[daniel@procarpet]

I think you would be better off paying her a weekly salary of 350-400 per week. At the end of the month I would give her a commission for any amount above a set sales goal. Lets say your goal is 5,000 per month and she does 6,000 then pay her a percentage of the 1,000 dollars extra.

 

[ACE]

One of my customers asked if I would be looking for any help with janitorial accounts. She explained she was getting laid off from her sales / marketing job. I asked her to tell me about the work she had been doing. She works for some roofing industry association; it’s kind of like what the IICRC is to us. She goes to trade shows edits magazine articles and makes cold calls. She has a very sincere, energetic personality. I’m meeting with her next week to talk about the possibility of a sales job. I need to find out what her expectations are but I’m thinking of offering something like this:
Pay would be on a 1099 basis.
$4500.00 to supplement commissions up to $1500.00 per month
20%-30% sales commission depending on the size and profitability on the sale.
10% residual commission for repeat customers.
She would be in charge of a small marketing budget $200-$300 per month.
If she is good, she should easily be able to sell $100 K the first year working part time. At an average commission of 25% that’s $25,000. With a decent customer retention rate, the next year she could easily pull $35k. To be honest, this is all a little scary to me. This not the risk of losing money that worries me it’s just a huge jump from where I’m at now. I am a one man show and this year I will have only done 80-90 K and have no commercial sales strategy in place. I know there is a huge chance she won’t work out, but with the loan payments for all the equipment I’ve bought I have little no option other than growing my business.

Thoughts?

It says in your quote 4500.00 plus commission up to 1500 per month. I assumed you meant 4500 guaranteed monthly plus commison. Anybody would work for that. You must have meant 450 weekly plus commison. What did you mean?

I was saying that I would pay a base to supplement commission to make sure the salesperson made a total of $1500.00 for the first few months. Another option would be to pay a flat deciding monthly base $1200, $800, $400.

 

[joe harper]

Gentelmen,

Do you ever run SPREAD-SHEATS on you business...?

I RUN A TIGHT SHIP...&... my personal profit's are around 30%... "and I OWN EVERTHING"

If you GROSS...90K a year...you have at BEST a 30K.."JOB" :!:

Your are EXTREEMLY..busy if you are a 1 MAN SHOW...to turn that #..


If you pay OUTSIDE SALES....20k a year ... you NOW have a 10k "JOB"... :roll:


Why not TRY THIS...."RAISE YOUR PRICES" either .05 a sf. or $5.00 a room... :idea:

Then you can do LESS WORK & GIVE YOURSELF a 15k "RAISE"..... :wink:

Where is the "SHAME" in growing your business at a SLOW STEADY PACE.... :?:



Before you Waste all this ENERGY trying to GROW your BIZ.. Why not DOUBLE the profit
on your EXISTING cleint base.... :!:

You need to have at least 2 Techs on your existing truck...&...You in the OFFICE...before
you even THINK about a SECOND TRUCK..... :wink:

You will need DOUBLE the BIZ with 2 trucks.....to make the same "PROFIT" as with the ONE..




IT IS NOT WHAT YOU MAKE.....IT IS WHAT YOU KEEP..... :wink:

 

[daniel@procarpet]

Gentelmen,

Do you ever run SPREAD-SHEATS on you business...?

I RUN A TIGHT SHIP...&... my personal profit's are around 30%... "and I OWN EVERTHING"

If you GROSS...90K a year...you have at BEST a 30K.."JOB" :!:

Your are EXTREEMLY..busy if you are a 1 MAN SHOW...to turn that #..


If you pay OUTSIDE SALES....20k a year ... you NOW have a 10k "JOB"... :roll:



Harper I hate to disagree with you on the 30 percent thing. I keep track of every dollar spent and every dollar that comes in. I know my exact profit. All my accountant does is just fill out the forms for me. My actual profit is WAY higher than 30 percent and I don't mean a few points either. That is because I don't advertise and I also own everything. My profit has not been too high lately because I have been taking 179 deductions and expensing my large equipment purchases in one year instead of depreciating them.


Why not TRY THIS...."RAISE YOUR PRICES" either .05 a sf. or $5.00 a room... :idea:

Then you can do LESS WORK & GIVE YOURSELF a 15k "RAISE"..... :wink:

Where is the "SHAME" in growing your business at a SLOW STEADY PACE.... :?:



Before you Waste all this ENERGY trying to GROW your BIZ.. Why not DOUBLE the profit
on your EXISTING cleint base.... :!:

You need to have at least 2 Techs on your existing truck...&...You in the OFFICE...before
you even THINK about a SECOND TRUCK..... :wink:

You will need DOUBLE the BIZ with 2 trucks.....to make the same "PROFIT" as with the ONE..




IT IS NOT WHAT YOU MAKE.....IT IS WHAT YOU KEEP..... :wink:

 

[Bjorn]

She would be in charge of a small marketing budget $200-$300 per month

wow

you want the truth

 

[floorguy]

Gentelmen,

Do you ever run SPREAD-SHEATS on you business...?

I RUN A TIGHT SHIP...&... my personal profit's are around 30%... "and I OWN EVERTHING"

If you GROSS...90K a year...you have at BEST a 30K.."JOB" :!:

Your are EXTREEMLY..busy if you are a 1 MAN SHOW...to turn that #..


If you pay OUTSIDE SALES....20k a year ... you NOW have a 10k "JOB"... :roll:


Why not TRY THIS...."RAISE YOUR PRICES" either .05 a sf. or $5.00 a room... :idea:

Then you can do LESS WORK & GIVE YOURSELF a 15k "RAISE"..... :wink:

Where is the "SHAME" in growing your business at a SLOW STEADY PACE.... :?:



Before you Waste all this ENERGY trying to GROW your BIZ.. Why not DOUBLE the profit
on your EXISTING cleint base.... :!:

You need to have at least 2 Techs on your existing truck...&...You in the OFFICE...before
you even THINK about a SECOND TRUCK..... :wink:

You will need DOUBLE the BIZ with 2 trucks.....to make the same "PROFIT" as with the ONE..




IT IS NOT WHAT YOU MAKE.....IT IS WHAT YOU KEEP..... :wink:

just a thought...

what if your exsisting base doesnt want a raise in prices???

I would want one for me, to do that which i hate,,, So ifn they bring in another 90k in biz for me and i have to pay 20k, then yay me....


btw i am closer to 40-50% because i dont have all that YP and AT or V things hanging over my head

 

[joe harper]

Dan

It is fine to disagree...It also great that you watch your #'s...

But if don't have the normal business expenses..advertizing,payroll,ect..ect...

You have ONLY...bought yourself a job... :|

Just work hard & enjoy being your own boss... 8)

 

[daniel@procarpet]

Yes Harper, I will work on the truck until I can gross 250k with just me and a helper and I am nowhere near that.

 

[joe harper]

You will be soon.....You ask all the right questions.... :wink:

 

[ACE]

Gentelmen,

Do you ever run SPREAD-SHEATS on you business...?

I RUN A TIGHT SHIP...&... my personal profit's are around 30%... "and I OWN EVERTHING"

If you GROSS...90K a year...you have at BEST a 30K.."JOB" :!:

Your are EXTREEMLY..busy if you are a 1 MAN SHOW...to turn that #..


If you pay OUTSIDE SALES....20k a year ... you NOW have a 10k "JOB"... :roll:


Why not TRY THIS...."RAISE YOUR PRICES" either .05 a sf. or $5.00 a room... :idea:

Then you can do LESS WORK & GIVE YOURSELF a 15k "RAISE"..... :wink:

Where is the "SHAME" in growing your business at a SLOW STEADY PACE.... :?:



Before you Waste all this ENERGY trying to GROW your BIZ.. Why not DOUBLE the profit
on your EXISTING cleint base.... :!:

You need to have at least 2 Techs on your existing truck...&...You in the OFFICE...before
you even THINK about a SECOND TRUCK..... :wink:

You will need DOUBLE the BIZ with 2 trucks.....to make the same "PROFIT" as with the ONE..




IT IS NOT WHAT YOU MAKE.....IT IS WHAT YOU KEEP..... :wink:

I think you’re a smart guy Harper and you are successful with you business. Everyone has a different business and they are different ways to think about the numbers. At $90K by myself, your right I’m very busy in the summer. With a helper I could do $150K and it would feel like less work. That 90K is all residential and some subcontract work. My plan is to drop the sub work in the spring and take a few customers with me. The residential work just takes time to grow. The commercial work you have to go after. I plan to go after the commercial work this winter with or without a salesperson. If a salesperson adds 100K in commercial and I add an employee I should gross 200K and net at least 100K if I stay on the truck. Now, you can say that's only 70K cus I'm paying my own salery but it's still 35% profit.

If I add someone for outside sales I think I would always want to pay them a small base. I think it changes the psychology. That base makes them more of an employee than a free agent.

 

[ACE]

She would be in charge of a small marketing budget $200-$300 per month

wow

you want the truth

If you have some constructive advice, I would love to hear it. How are you paying your outside sale rep? I’m trying something new here I know there is a huge chance it won’t work out but, you have to try right?
What would be really helpful is advice from someone that is actually using an outside sale rep.